I'm a freelance writer who has published in the New York Times, The Wall Street Journal, The Los Angeles Times and others, and the author of the Forbes ebook "The Millennial Game Plan: Career And Money Secrets To Succeed In Today’s World." I graduated Phi Beta Kappa with Honors from Stanford University and have a master of arts from Columbia University’s School of Journalism. To learn more about me, go to www.laurashin.com, or follow me at @laurashin.

Tax-Free Weekend Season Begins! Does Your State Participate?

Seventeen years ago, New York state began a tradition that has been adopted by many states: a sales-tax holiday weekend during the back-to-school rush.

“It was developed as a way to give parents a break on the back-to-school shopping season,” says Anna Christakos of Offers.com, which gives consumers information on sales, coupon codes and discounts online and in stores. “There’s a lot of expenses you have to get during that time — textbooks, school supplies, clothing.”

This year, 17 states are holding one, all of them occurring from the end of July to the first half of August. Even if yours isn’t participating, perhaps a neighboring state a short drive away has one, or you can buy from an online store based in a state with the holiday.

If you decide to take advantage, keep in mind various fine-print rules so you don’t accidentally pay sales tax anyway.

All states have different dates. Most are in August, but Mississippi has its holiday the last weekend of July.

2. Find out what you can and can’t buy tax-free.

Most states restrict the holiday to back-to-school items like textbooks, computers and school supplies. Check out the state’s Department of Revenue site (where applicable, linked in the chart below) to see what you can buy and what is off-limits.

3.Watch for price restrictions and exclusions.

Clothing is usually tax-free, but typically only for items less than $100. “If you have a $200 shirt in your basket, you’re not going to get that one tax free,” says Christakos.

Items like computers and electronics have higher thresholds like $1,000 to $2,000. It could be a good time to buy an Apple product, since they are typically more expensive and rarely go on sale.

Also, certain brands and products might be excluded, so, for instance, you could save on flip flops but not cowboy boots, or on a Kate Spade purse but not a Guess purse.

Finally, if you were planning on buying your kids’ athletic gear, like helmets or racquets, it most likely will be excluded.

4. Plan ahead.

“Make a list. Decide, plan, don’t go crazy and go on a shopping spree,” says Christakos. Figure out what you need, and compare sites beforehand to see which stores have the best prices. Also, remember that saving on sales tax of, say 7.5%, is small compared to a big, say, 40%-off sale. During tax-free weekend, a $100 item would cost you $100, but during a 40%-off sale in a state with 7.5% tax, you’ll pay $64.50.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.